Georgia: Affordable Mortgage Finance
The transaction will support affordable mortgage and home renovation financing for urban and rural dwellers households with lower and medium incomes. The proposed ADB assistance comprises a senior loan of up to the lari equivalent of $100 million to TBC with a tenor of up to 6 years.
Private Sector Operations Department
Request for information
5 December 2018
|Project Name||Affordable Mortgage Finance|
|Borrower / Company||TBC Bank JSC
|Country / Economy||Georgia
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Banking systems and nonbank financial institutions
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Hartel, Rainer|
|Description||The transaction will support affordable mortgage and home renovation financing for urban and rural dwellers households with lower and medium incomes. The proposed ADB assistance comprises a senior loan of up to the lari equivalent of $100 million to TBC with a tenor of up to 6 years.|
|Objectives and Scope||TBC will provide mortgage financing in urban areas benefiting mainly low- to medium-income families.|
|Linkage to Country/Regional Strategy||
The proposed transaction supports improving progress in gender equality in line with ADB's strategy 2030. The transaction is consistent with government efforts to promote the well-being of its citizens and ADBs country partnership strategy, 2014-2018 with Georgia.
ADB plays a tangible role in deepening the finance sector in Georgia. Since 2007, it has provided nonsovereign loans amounting to $255 million and TA to banks and its Trade Finance Program. ADBs nonsovereign efforts align with a sovereign program approved in 2016 and a new program anticipated for 2019 to develop the capital markets, including the issuance of lari bonds and covered bond legislation, among other banking policy reforms.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||TBC's mortgages to be funded by the ADB loan have minimal or no adverse environmental impacts.|
|Involuntary Resettlement||TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on involuntary resettlement.|
|Indigenous Peoples||TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||Potential housing and mortgage finance borrowers participate through market research activity undertaken by TBC in determining the most appropriate lending product design to its target customers. TBC has extensive national networks of branches and fintech service channels through which to engage and empower beneficiaries.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||31 Jul 2018|
|Credit Committee Meeting||29 Oct 2018|
|Approval||05 Dec 2018|
|Last PDS Update||11 Jan 2019|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Low-Income Housing Finance and Affordable Mortgage Finance: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2018|
|Affordable Mortgage Finance: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Aug 2018|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.